UK has plenty of leverage and should be able to negotiate a reasonable agreement. EU has a lot to lose, and at risk losing other prominent members once UK exits. It is only natural for EU to negotiate a tough barbain to avoid setting a bad precedent. That said, both parties have leverage.

Yes, the eye-watering stupidity of the British people voting to leave the E.U, will become apparent as the two year negotiations really get under way.On one hand the result of the referendum can be described as a democratic outcome and on the other as ''mob rule''.Insufficient time was taken to explain the cost of the downside of leaving the E.U, and this is just beginning as we see the start of the major banks moving to Germany and one of the major airlines relocating to Europe.The E.U, has to crucify the U.K. so as to deter any other nations following suit..Watch with disgust as those influential figures who supported Brexit disappear into the mists as the horrors of non E.U, membership begins to bite.